Question 1

Consumer surplus is equal to the

Accepted Answer

A)  Value to buyers - Amount paid by buyers. 
B)  Amount paid by buyers - Costs of sellers. 
C)  Value to buyers - Costs of sellers. 
D)  Value to buyers - Willingness to pay of buyers. 
A)  Value to buyers - Amount paid by buyers. 
B)  Amount paid by buyers - Costs of sellers. 
C)  Value to buyers - Costs of sellers. 
D)  Value to buyers - Willingness to pay of buyers.

Question 2

Table 7-4
The numbers in Table 7-1 reveal the maximum willingness to pay for a ticket to a Chicago Cubs vs. St. Louis Cardinal's baseball game at Wrigley Field.
  
-Refer to Table 7-4. If you have two essentially) identical tickets that you sell to the group in an auction, what will be the selling price for each ticket?

Accepted Answer

The answer of Table 7-4
The numbers in Table 7-1 reveal...

Question 3

If Darby values a soccer ball at $50, and she pays $40 for it, her consumer surplus is $10.

Accepted Answer

A) True 
 B)False

Question 4

Refer to Figure 7-12. If the equilibrium price rises from $200 to $350, what is the additional producer surplus to initial producers?

Accepted Answer

A)  $15,000 
B)  $3,750 
C)  $7,500 
D)  $30,000 
A)  $15,000 
B)  $3,750 
C)  $7,500 
D)  $30,000

Question 5

Figure 7-16  
-Refer to Figure 7-16. Producer surplus amounts to $300 if the price of the good is

Accepted Answer

A)  $300. 
B)  $350. 
C)  $400. 
D)  $450. 
A)  $300. 
B)  $350. 
C)  $400. 
D)  $450.

Question 6

Table 7-11
The following table represents the costs of five possible sellers.
-Refer to Table 7-11. Who is a marginal seller when the price is $1,100?

Accepted Answer

A)  Dianne 
B)  Bobby and Abby 
C)  Carlos, Dianne, and Evaline 
D)  Carlos, Dianne, Evaline, and Bobby 
A)  Dianne 
B)  Bobby and Abby 
C)  Carlos, Dianne, and Evaline 
D)  Carlos, Dianne, Evaline, and Bobby

Question 7

In order to calculate consumer surplus in a market, we need to know willingness to pay and price.

Accepted Answer

A) True 
 B)False

Question 8

Total surplus in a market can be measured as the area below the supply curve plus the area above the demand curve, up to the point of equilibrium.

Accepted Answer

A) True 
 B)False

Question 9

Table 7-13
The numbers reveal the opportunity costs of providing 10 piano lessons of equal quality.
  
-Refer to Table 7-13. The equilibrium market price for 10 piano lessons is $300. What is the total producer surplus in the market?

Accepted Answer

The answer of Table 7-13
The numbers reveal the opportunity costs...

Question 10

Economists generally believe that, although there may be advantages to society from ticket-scalping, the costs to society of this activity outweigh the benefits.

Accepted Answer

A) True 
 B)False

Question 11

All else equal, a decrease in demand will cause an increase in producer surplus.

Accepted Answer

A) True 
 B)False

Question 12

Producer surplus directly measures

Accepted Answer

A)  the well-being of society as a whole. 
B)  the well-being of buyers and sellers. 
C)  the well-being of sellers. 
D)  sellers' willingness to sell. 
A)  the well-being of society as a whole. 
B)  the well-being of buyers and sellers. 
C)  the well-being of sellers. 
D)  sellers' willingness to sell.

Question 13

Figure 7-22  
-Refer to Figure 7-22. Assume demand increases, which causes the equilibrium price to increase from $50 to $70. The increase in producer surplus to producers already in the market would be

Accepted Answer

A)  $1,600. 
B)  $600. 
C)  $800. 
D)  $1,200. 
A)  $1,600. 
B)  $600. 
C)  $800. 
D)  $1,200.

Question 14

If Darby values a soccer ball at $50, and she pays $40 for it, her consumer surplus is $90.

Accepted Answer

A) True 
 B)False

Question 15

Refer to Figure 7-11. If the demand curve is D and the supply curve shifts from S' to S, what is the change in producer surplus?

Accepted Answer

A)  Producer surplus increases by $625. 
B)  Producer surplus increases by $1,875. 
C)  Producer surplus decreases by $625. 
D)  Producer surplus decreases by $1,875. 
A)  Producer surplus increases by $625. 
B)  Producer surplus increases by $1,875. 
C)  Producer surplus decreases by $625. 
D)  Producer surplus decreases by $1,875.

Question 16

Figure 7-23  
-Refer to Figure 7-23. The efficient price-quantity combination is

Accepted Answer

A)  P1 and Q1. 
B)  P2 and Q2. 
C)  P3 and Q1. 
D)  P4 and 0. 
A)  P1 and Q1. 
B)  P2 and Q2. 
C)  P3 and Q1. 
D)  P4 and 0.

Question 17

Scenario 7-1
Suppose market demand is given by the equation  
-Refer to Scenario 7-1. If the market equilibrium price is $10, how much is total consumer surplus in this market?

Accepted Answer

Consumer s

Question 18

Each seller of a product is willing to sell as long as the price he or she can receive is greater than the opportunity cost of producing the product.

Accepted Answer

A) True 
 B)False

Question 19

Figure 7-3  
-Refer to Figure 7-3. When the price is P2, consumer surplus is

Accepted Answer

A)  A. 
B)  B. 
C)  A+B. 
D)  A+B+C. 
A)  A. 
B)  B. 
C)  A+B. 
D)  A+B+C.

Question 20

Ticket scalping can increase total surplus in the market for tickets to sporting events.

Accepted Answer

A) True 
 B)False

Exam 7: Consumers, Producers, and the Efficiency of Markets

Consumer surplus is equal to the

If Darby values a soccer ball at $50, and she pays $40 for it, her consumer surplus is $10.

Refer to Figure 7-12. If the equilibrium price rises from $200 to $350, what is the additional producer surplus to initial producers?

Figure 7-16 -Refer to Figure 7-16. Producer surplus amounts to $300 if the price of the good is

Table 7-11 The following table represents the costs of five possible sellers. -Refer to Table 7-11. Who is a marginal seller when the price is $1,100?

In order to calculate consumer surplus in a market, we need to know willingness to pay and price.

Total surplus in a market can be measured as the area below the supply curve plus the area above the demand curve, up to the point of equilibrium.

Table 7-13 The numbers reveal the opportunity costs of providing 10 piano lessons of equal quality. -Refer to Table 7-13. The equilibrium market price for 10 piano lessons is $300. What is the total producer surplus in the market?

Economists generally believe that, although there may be advantages to society from ticket-scalping, the costs to society of this activity outweigh the benefits.

All else equal, a decrease in demand will cause an increase in producer surplus.

Producer surplus directly measures

Figure 7-22 -Refer to Figure 7-22. Assume demand increases, which causes the equilibrium price to increase from $50 to $70. The increase in producer surplus to producers already in the market would be

If Darby values a soccer ball at $50, and she pays $40 for it, her consumer surplus is $90.

Refer to Figure 7-11. If the demand curve is D and the supply curve shifts from S' to S, what is the change in producer surplus?

Figure 7-23 -Refer to Figure 7-23. The efficient price-quantity combination is

Scenario 7-1 Suppose market demand is given by the equation -Refer to Scenario 7-1. If the market equilibrium price is $10, how much is total consumer surplus in this market?

Each seller of a product is willing to sell as long as the price he or she can receive is greater than the opportunity cost of producing the product.

Figure 7-3 -Refer to Figure 7-3. When the price is P2, consumer surplus is

Ticket scalping can increase total surplus in the market for tickets to sporting events.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Application: the Costs of Taxation

Application: International Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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